Holiday Inn to be built on Air Force land

Published: Thursday, November 15, 2012 at 09:07 PM.

OKALOOSA ISLAND — Thursday’s announcement that this morning’s groundbreaking for a $25 million hotel on Eglin Air Force Base property contained a couple of surprises.

First, the hotel will be a Holiday Inn franchise.

Second, the Poarch Band of Creek Indians, perhaps best known for its three gaming interests in Alabama, is a development partner with Innisfree.

Rich Chism, director of development for Innisfree, said “the unique nature” of the lease executed between the developers, Holiday Inn and the Air Force required discretion that prevented the release of some details of the deal.

“The closing was simultaneous execution of the lease, the Holiday Inn Resort franchise, the loan, and the equity investment,” Chism said in an email. “Thus, it would not have been appropriate to make any other announcements until the closing was actually completed.”

Owners of other resort locations on Okaloosa Island have been suspicious of the development originally announced in late 2009 by Innisfree Hotels and dck North America.

They fear that because the hotel will be on military land not subject to property taxes, its developers will have an unfair advantage over them.

They also fear a resort with ties to the military will be unfairly able to attract active-duty guests. Military members make up a hefty proportion of off-season hotel room rentals.

There even has been fear that a hotel on federal land might not be subject to county scrutiny if Florida legalizes some form of casino gambling.

Chism said the Poarch Band of Creek Indians’ role in the development has nothing to do with bringing gaming to Okaloosa County.

“This is a tribal strategy to diversify away from gaming when possible,” he said in his email.

“There are no plans for any gaming activities, and gaming is not an allowed use on the USAF property, anyway,” Chism added.

This is not the first partnership between Innisfree, owned by Julian MacQueen of Gulf Breeze, and the Creek Indian tribe, Chism said.

“The Creek Indian Enterprises Development Authority of the Poarch Band of Creek Indians previously invested in Innisfree’s Hyatt Place Hotel in Pensacola and desired to invest in this project as well,” Chism said.

Sharon Delmar, a spokesman for the Poarch Band, declined to comment when asked how long ago her group partnered with Innisfree on the Okaloosa Island project. She referred questions to Buford Rolan, the chairman of the Poarch Band of Creek Indians.

For years after the announcement that a hotel would be built on Eglin’s A-5 test site between Waterscape condominiums and the Sheraton Four Points hotel, it was referred to as the Emerald Breeze Resort.

Elliot Kampert, Okaloosa County’s growth management director, said he heard Holiday Inn mentioned as the franchisee only recently, and was somewhat surprised when that was made public.

The groundbreaking for the 152-room Holiday Inn Resort, Destin West, is scheduled for 10:30 a.m. at the site.

The hotel will have two towers. The Air Force will have radar stations on the roofs of the buildings.

The Air Force will continue to own the property and will collect rent from the developers.

OKALOOSA ISLAND — Thursday’s announcement that this morning’s groundbreaking for a $25 million hotel on Eglin Air Force Base property contained a couple of surprises.

First, the hotel will be a Holiday Inn franchise.

Second, the Poarch Band of Creek Indians, perhaps best known for its three gaming interests in Alabama, is a development partner with Innisfree.

Rich Chism, director of development for Innisfree, said “the unique nature” of the lease executed between the developers, Holiday Inn and the Air Force required discretion that prevented the release of some details of the deal.

“The closing was simultaneous execution of the lease, the Holiday Inn Resort franchise, the loan, and the equity investment,” Chism said in an email. “Thus, it would not have been appropriate to make any other announcements until the closing was actually completed.”

Owners of other resort locations on Okaloosa Island have been suspicious of the development originally announced in late 2009 by Innisfree Hotels and dck North America.

They fear that because the hotel will be on military land not subject to property taxes, its developers will have an unfair advantage over them.

They also fear a resort with ties to the military will be unfairly able to attract active-duty guests. Military members make up a hefty proportion of off-season hotel room rentals.

There even has been fear that a hotel on federal land might not be subject to county scrutiny if Florida legalizes some form of casino gambling.

Chism said the Poarch Band of Creek Indians’ role in the development has nothing to do with bringing gaming to Okaloosa County.

“This is a tribal strategy to diversify away from gaming when possible,” he said in his email.

“There are no plans for any gaming activities, and gaming is not an allowed use on the USAF property, anyway,” Chism added.

This is not the first partnership between Innisfree, owned by Julian MacQueen of Gulf Breeze, and the Creek Indian tribe, Chism said.

“The Creek Indian Enterprises Development Authority of the Poarch Band of Creek Indians previously invested in Innisfree’s Hyatt Place Hotel in Pensacola and desired to invest in this project as well,” Chism said.

Sharon Delmar, a spokesman for the Poarch Band, declined to comment when asked how long ago her group partnered with Innisfree on the Okaloosa Island project. She referred questions to Buford Rolan, the chairman of the Poarch Band of Creek Indians.

For years after the announcement that a hotel would be built on Eglin’s A-5 test site between Waterscape condominiums and the Sheraton Four Points hotel, it was referred to as the Emerald Breeze Resort.

Elliot Kampert, Okaloosa County’s growth management director, said he heard Holiday Inn mentioned as the franchisee only recently, and was somewhat surprised when that was made public.

The groundbreaking for the 152-room Holiday Inn Resort, Destin West, is scheduled for 10:30 a.m. at the site.

The hotel will have two towers. The Air Force will have radar stations on the roofs of the buildings.

The Air Force will continue to own the property and will collect rent from the developers.